February 22, 2018 Comments (0) Blog, Current Investigations

Tender offer – American Finance Trust – $13.66/share

American Finance Trust

Recovery of Investment Losses in American Finance Trust

American Finance Trust is a publicly registered non-traded real estate investment trust sponsored by AR Global. According to its website, American Finance Trust, Inc. (“AFIN”) is “designed to protect shareholder capital and provide attractive, stable cash distributions.”

According to its website, American Finance Trust has a lengthy list of “potential risks and uncertainties” related to an investment in the REIT. The company warns that the benefits of the recent merger with ARC Retail Centers of America may not be realized anytime soon.

Third Party Tender Offer

According to recent SEC Filings, MacKenzie Capital Management LP has launched an unsolicited tender offer to purchase up to 1 million shares of American Finance Trust Inc. common stock for $13.66 each. The offer expires on March 22, 2018, unless extended.

The board of American Finance Trust is urging company shareholders to reject the offer and has authorized a self-tender offer in response.

The Company is offering to purchase up to 1 million shares for $14.35 each and recommends stockholders not sell their shares in either offer. The offer from American Finance Trust expires on March 27, 2018.

According to the company, American Finance Trust has an estimated net asset value (NAV) of approximately $23.37 per share as of December 31, 2016. Shares were originally sold to investors for $25.00 each, prior to the close of the offering in October 2013.

Securities Investigation

The White Law Group continues to investigate potential securities fraud claims involving broker-dealers’ improper recommendation that investors purchase high-risk non-traded REIT investments, like American Finance Trust or ARC Retail Centers of America. Many investors are not fully aware of the problems and risks associated with these investments before purchasing them.

Real estate investment trusts (REITs) are complex and inherently risky products. Compared to traditional investments, such as stocks, bonds and mutual funds, REITs are significantly more complex and often better suited for sophisticated and institutional investors.

Another problem often associated with REIT recommendations is the high sales commissions brokers typically earn for selling REITs – as high as 15%.

Brokers have an obligation to make investment recommendations that are consistent with their clients risk tolerance, net worth, investment objectives and experience in the market. Unfortunately, in many cases, the high sales commission may provide some brokers with enough incentive to make unsuitable investment recommendations.

Firms that fail to perform adequate due diligence on an investment may be held responsible for any losses in a FINRA arbitration claim.

FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.

 

Free Consultation

If you suffered losses investing in American Finance Trust the attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call The White Law Group at (888) 637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.